Originally published on: September 17, 2024
The crypto market is on the rise once again, propelled by various factors that are driving excitement and confidence among investors. Let’s delve into what is fueling the current surge and why the crypto world is abuzz with activity.
**Market Momentum: Riding the Wave of S&P 500 High**
The recent rally in the crypto market gained momentum following the historic rise of the S&P 500 to a new all-time high of 5,670. This surge was influenced by speculations of a significant 50 basis point interest rate cut scheduled for September 18. As a result, the total crypto market capitalization has surged by approximately 4% in the past 24 hours, reaching a staggering $2.1 trillion.
**Bitcoin and Ether Leading the Charge**
The leading cryptocurrencies, Bitcoin and Ether, have experienced notable gains, with Bitcoin surging around 5% and Ether climbing by 3.4%. This upward trajectory underscores the growing confidence and bullish sentiment in the crypto market.
**US Equities and the Fed’s Decision Impact**
The current momentum in the crypto market mirrors the strength of US equities, particularly the soaring performance of the S&P 500. Market pundits are closely watching the Federal Reserve’s upcoming decision post the Federal Open Market Committee (FOMC) meeting on September 17 and 18. With expectations of a series of rate cuts, the outcome is poised to have a significant impact on the market landscape.
**Spot Bitcoin ETF Inflows Boosting Sentiment**
The increase in bullish sentiment is further fueled by substantial inflows into spot Bitcoin exchange-traded funds (ETFs) in the US market. Investors witnessed net inflows of $403 million in the past week, with continued positivity seen on September 16. This influx of funds signals a growing interest in cryptocurrencies as a viable investment option.
**Market Structure Predicts Potential Growth**
Technically speaking, the crypto market cap is trading within a double-bottom channel pattern, hinting at a potential bullish momentum. With a recent recovery to $2.24 trillion and a subsequent pullback to $1.81 trillion, the market is showing signs of a potential rebound towards $2.42 trillion. While double-bottom setups carry some risks, the overall market sentiment remains optimistic.
In conclusion, the crypto market’s resurgence today is driven by a combination of market dynamics, investor sentiment, and external macroeconomic factors. As the market continues to evolve, staying informed and adapting to changing trends is crucial for investors looking to capitalize on this exciting asset class.
As the crypto market continues to evolve and adapt, staying alert and adapting to fluctuations will be vital for investors. Stay tuned for more updates on this dynamic and ever-changing market landscape.
